Wall Street Trader schreef op 11 juni 2023 13:47:
[...]
Some keynotes and feedback from the Conference.Divestments: the divestment processes for the remaining non-core assets are continuing, with the divestment process of
the activities in Algeria and Pakistan probably a bit more advanced than Brazil and Turkey.
• US: Ontex still sees a lot of room for private label to grow, as for example in baby care private label represents only 24% of
the market vs a share of private label of c. 40% in Europe.
• Capex in the medium term is guided at around 4% of revenue, while capex needs in the shorter term might be a bit higher,
ao given ongoing efforts to uniformize machinery and the production footprint.
• Ontex organized an interesting demo on its innovative diaper for elderly care. The company has developed software and a
sensor mechanism that signals the personnel of the elderly care homes which persons require a diaper change. The product
has been tested in around 100 elderly care homes in the past few years and has received excellent feedback whilst being
ready now for commercial roll-out.
• Raw materials: fluff prices are up for Ontex in 2023, but for other raw materials the company is starting to see some
easing. It will take a bit of time (6 months) for that to filter through to the P&L.
• The board has set a long term incentive program for management solely based on a share price of € 15 (i.e. roughly double
the current share price)• End game? Ontex has halted the preliminary combination talks with Attindas a while ago. While the company now looks set to execute the targeted strategic transformation alone, we would not exclude to see Ontex eventually being acquired or merged with another groupI have to agree with bruguy this stock has unfortunately been dead money for more than a year now.
Let's hope the turnaround will finally continue in the upcoming months, if effectively executed, it can deliver significant value for us as shareholders.